Before North Korea decided to restart its nuclear weapons facilities in 2002, this blue-ribbon group of experts voiced its concern that North Korea would do just that. It warns in this report that progress made on the Korean Peninsula was fragile and diplomatic gains achieved by the United States and South Korea in the past decade are not irreversible. Pyongyang's nuclear ambitions could raise tensions and produce the kind of confrontation that almost led to war in 1994. It could also lead Pyongyang to lift its self-imposed moratorium on ballistic missile tests. To head off these dangers, the Task Force urges that the Bush administration treat North Korea as a foreign policy priority and for what it is: both a fragile and a dangerous power. The Task Force recommends that the United States and its allies in the region use both economic carrots and sticks in working with Pyongyang.